The hospitality sector in Minnesota is progressing with a steady pace. Investors find the Twin Cities attractive, and for that reason the hotel market has been growing rapidly in the past few years. The heights of construction reached prior to the recession might be hard to top, but according to hospitality
professionals, 2014 is the fourth year in a row marking progress in the sector.
What contributes to the increase of new construction and sales is a favorable climate of low interest rates, more money to invest in hotel deals along with a record high occupancy rate. Statistics show that in 2013, occupancy in Minneapolis hit 72%, while in St. Paul was 63%.
Industry experts have noted that such good numbers encourage more construction and attract investors from outside Minnesota.
A New York commercial property data company called Real Capital Analytics issued a report supporting that trend. According to the report, investors today are more interested in secondary U.S. markets like the Twin Cities. Moreover, in 2013, sales in non-major metropolitan areas increased by 49% as sales in the six major metros decreased.
Read the full story at Finance & Commerce.